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22 June 2009 • 7:11 am

Cascading Conundrums – Part III

In Parts I and II of this topic, I asserted that cascading a balanced scorecard (BSC) across an organization is a process that requires careful planning, and thoughtful answers to the ‘When’, ‘Why’, and ‘Where’ questions. I cautioned that hastily planned cascading can derail the entire change program. Here, we conclude with the final three questions a leadership team should consider before cascading strategy across the organization.
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19 June 2009 • 12:29 pm

Cascading Conundrums – Part II

In Part I of this topic, I asserted that cascading a balanced scorecard (BSC) across an organization is a process that requires careful planning, and thoughtful answers to the ‘When’ and ‘Why’ questions. I cautioned that hastily planned cascading can derail the entire change program. Here, we continue with the next question every leadership team should consider before cascading strategy across the organization.

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18 June 2009 • 12:24 pm

Cascading Conundrums – Part I

Cascading is a term that has been used in the balanced scorecard (BSC) community to describe the process of propagating the BSC across an organization. Although the term implies a downward movement (through the organization’s hierarchy), propagation in any direction has come to be referred to as ‘cascading.’ Some people mistakenly apply the term to the strategy communication process; after all, they reason, communication of strategy also cascades through the organization, and is certainly related to BSC propagation. But I believe that cascading and communication are two separate processes, especially since communication is absolutely essential to the change process, while cascading is not always necessary or beneficial. And poorly-planned cascading can derail the change program.

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17 June 2009 • 11:33 am

Talking about Strategy

An excellent predictor of the effectiveness of the change program in any organization is how that organization’s members talk about strategy. Leaders engaging in a change program tend to spend far more energy in developing their strategy than they do in ensuring that the message of strategy is effectively communicated throughout the organization. This isn’t surprising: talking about strategy doesn’t come naturally, but it is essential to the success of the change program.

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11 June 2009 • 6:22 pm

Required Reading in the White House

The New York Times reported this week that a recent New Yorker article on health care spending has become required reading in the White House, and that President Obama referred to the article in a briefing on health care reform with Democratic senators. The article, which is a lengthy but very worthwhile read, was written by Atul Gawande, who is both a staff writer for the New Yorker and general and endocrine surgeon at Brigham and Women’s Hospital in Boston. Along with President Obama, I recommend this article to anyone interested in the likely changes to U.S. health care policy that is on the political horizon.

Gawande’s article follows his curiosity and research into regional disparities in health care spending; why some places spend far more (per Medicare enrollee, an approximation of overall spending) than others, without significant differences in overall public health or patient outcomes. His research focused on the town of McAllen, Texas, “the most expensive town in the most expensive country for health care in the world,” where annual Medicare spending per enrollee (in 2006) was around $15,000, almost twice the national average.

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8 June 2009 • 11:36 am

The Motivating Power of Measurement

Practitioners and fans of the balanced scorecard concept understand that measurement has the power to motivate behavior. The great challenge in driving change in any organization isn’t just to change the culture, but to change the behavior of individuals and groups inside the organization. Performance measurement doesn’t just tell us how well we’re doing at achieving a desired outcome, the very process of measurement and communication of measure results actually changes behavior.

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29 May 2009 • 11:35 am

Military Ship Sinks off Florida Coast

Today’s offering is a departure from the sometimes dry prose of change and strategy offered here. A story that began over sixty years ago culminated on Wednesday in the very wet Atlantic Ocean about six miles off of Key West, Florida. A story of remarkable tenacity.

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25 May 2009 • 11:19 am

Hygienic Strategy?

Much of my work with organizations has been influenced by two classic theories of human behavior and motivation. Many of my clients have been familiar with Abraham Maslow’s Hierarchy of Needs, in which human needs are arranged like rungs on a ladder. According to Maslow, the most basic needs at the bottom of the ladder are physical, such as air, water, food, and sleep. Next are safety needs, followed by psychological, or social needs; for belonging, love, acceptance. Next are esteem needs; to feel achievement, status, responsibility, and reputation. At the top of it all are the self-actualizing needs; the need to fulfill oneself, to become all that one is capable of becoming. Maslow felt that unfulfilled needs lower on the ladder would inhibit the person from climbing to the next step. Published in 1943, Maslow’s Theory of Human Motivation has been a remarkably durable set of ideas, given the advances in behavioral science in the decades since.

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22 May 2009 • 7:41 pm

Strategy Execution Impossible Without IT

An overview of the history of information technology in organizations shows that at one time, decisions about IT spending were simple cost-benefit calculations made to reduce labor. Things are very different today.

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21 May 2009 • 1:32 pm

Blockbuster vs. Netflix: A Case of Technology-Driven Strategy

For a few years now, I’ve been doing a riff on Blockbuster and Netflix in some of my speaking engagements. It’s been a useful case for sharing many of my insights about strategic management and the role of technology in strategy (disclaimer: neither of these firms has been a client of mine, and my impressions have been formed only from publicly-available information).

The essence of the riff is this: Blockbuster built a very successful business model and then had its lunch eaten by Netflix. The key lessons we can learn from this case are:

  • Don’t underestimate the power of technology to change your competitive environment.
  • Constantly be looking for ways to challenge and reinvent your value proposition, or your competitors will do it for you.
  • Recognize and overcome the forces that will resist change in your own organization.

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